Certified Microsoft Dynamics 365 Partner - Est. 1993 - Melbourne - Sydney

Payroll Implementation

Dynamics 365Payroll Implementation ANZ

Manual payroll and siloed systems hinder your business and increase compliance risks. As a Dynamics 365 payroll implementation consultant, DHRP creates a tailored payroll system to fit your ERP, ensuring your payroll solution is accurate, automated and compliant with ANZ rules, and ready for STP Phase 2 and Payday Super.

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What Are The Challenges During D365 Payroll Implementation?

There are predictable reasons why payroll implementation projects don't go as planned. The key to avoiding some of the most common pitfalls in businesses in Australia and New Zealand is knowing about them ahead of time, and that's exactly what a Dynamics 365 payroll implementation consultant does from day one.

No Roadmap

Every payroll implementation requires a roadmap. No one does it differently, no matter how big or how complicated your payroll project is. But without one, timelines are derailed, data extraction is delayed, and your project management becomes more reactive than proactive. No matter how large or complex your organisation is.

Data Security Gaps

Data migration is as secure as the surrounding security. Even after you've executed the go-live on your new payroll system, inaccurate and unsecured employee, tax and superannuation data puts your business at risk.

Post-Implementation Testing Failure

One of the most common payroll implementation pitfalls is rushing through the testing phase. Untested pay runs can have errors in calculations, award interpretation and compliance issues that can be much more difficult to correct in production.

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Why Do You Need A Dynamics 365 Payroll Implementation Consultant?

You need a dedicated implementation consultant because:

A well-structured payroll system can help you pay employees correctly and on time, comply with ANZ tax and superannuation requirements, and keep audit-ready records, but it raises some real questions early on.

Would you prefer to have a centralised Microsoft Dynamics 365 payroll solution? What information should be transferred and from where? A Dynamics 365 payroll implementation consultant answers these before configuration begins, not after.

Payroll, HR & time data currently reside in:

  • What awards, agreements and conditions of work do you have in place for your workforce?
  • What should be moved vs. what can be rebuilt?
  • How compliance for ANZ (STP, SuperStream and Payday Super) relates to your pay cycle

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Discover the Out-of-the-box Features of Dynamics 365 Payroll for Effortless Payroll Management

DHRP has a purpose-built Australian and NZ payroll module, something that Microsoft Dynamics 365 doesn't come with. After you select and adopt your payroll compliance software for both markets, your team can work within your current ERP without needing a separate payroll system. No spreadsheets or manual reconciliation to manage payroll across both countries.

STP Phase 2 Reporting

Use STP Phase 2 Reporting to report gross wages, tax withheld and superannuation to the ATO at each pay cycle. Earnings and tax data is reported electronically each time it runs, but the employee will fill in their TFN declaration, and you will keep this on file.

Payday Super & Superannuation Guarantee Automation

Super must be paid to the employee's fund within 7 business days of payday from 1 July 2026, not every quarter. Superannuation guarantee automation in Dynamics 365 automatically processes and calculates at 12% of ordinary earnings on each pay run.

Modern Award Interpretation & Overtime

Modern award interpretation in Dynamics 365 payroll eliminates manual overtime, penalty rate and allowance calculations based on each employee's award or agreement, minimising the risk of underpayment from looking up rates in a spreadsheet for your Australian workforce.

Automated PAYG & ANZ Taxation

With Automated PAYG tax calculation in Dynamics 365, Australian tax rules, thresholds, and rebates are automatically applied to each pay run, which means PAYG withholding and payroll tax remain accurate, and no manual updates to the tax rates are required annually.

SuperStream

SuperStream allows superannuation contributions to be paid electronically in a standardised data format and enables reconciliation of payments and data to be done automatically. Transferring to employee super accounts in a timely manner, and with accuracy, will minimise error and administration between the fund and the employees.

New Zealand PAYE & IRD Payday Filing

The current five-bracket NZ tax rates, and the declaration of each employee's IR330 tax code are applied automatically. New Zealand has requirements to file employment information with Inland Revenue, which means that employment information is now stored electronically within two working days of every payday.

KiwiSaver Contribution Management

For employees, KiwiSaver contributions are calculated each pay period automatically, with the minimum employer contribution (3.5% of gross salary) added to employee contributions and Employer Superannuation Contribution Tax (ESCT), ensuring New Zealand retirement savings keep up with everyone's pay cycle.

ACC Earners Levy & Student Loan Deductions

The system automatically deducts the New Zealand ACC earners levy and student loan repayments for each employee, using current thresholds and caps, and keeps deductions accurate without manual recalculation as thresholds and caps change over tax years.

Rostering, Leave & Time Off in Lieu

Roster in the same system that processes payroll so hours worked, leave accrued and pay entitlements remain in sync automatically across Australia and New Zealand.

Employee Self-Service

A secure self-service portal enables employees to access pay slips, request and track leave, and view their tax, superannuation or KiwiSaver history from any device, eliminating the need to make routine HR and payroll queries, and enhancing the overall employee experience.

GL & Financial Integration

Wages, deductions, superannuation, KiwiSaver, tax and other payroll data are automatically transferred to the general ledger for financial reporting and analysis, eliminating manual journal entries and making month-end and year-end financial information more accurate.

End-of-Year Processing & Reporting

Automate Wage Reconciliation, Leave Balance Updates & Overtime Review at Year-End. Create Australian payment summaries, New Zealand IRD reconciliations and access real-time payroll dashboards for informed business decisions in both markets.

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Dynamics 365 Payroll Implementation Process

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In our Dynamics 365 payroll implementation process, we take an agile, structured approach to avoid the common pitfalls of ad hoc implementations. Each phase leads to a tested, compliant payroll system, not a mere technical go-live.

Audit Current System

Before implementing a new payroll system, evaluating your current configuration is a good idea. This audit allows us to see what works and needs fixing.

Know Your Requirements

This is not just a step for the sake of it, but it is the framework for how the system will be set. Understanding every detail of your requirements allows us to plan more effectively, keep expenses on track, decrease delivery times, and ensure that you are completely satisfied with the result.

Evaluating and Documenting Processes

An accurate and up-to-date record of business processes serves as the foundation of efficient operations. Unfortunately, many companies lack documentation, and paperwork usually does not reflect the actual facts and analysis.

Leaving Old Problems behind

As we migrate to a new system, let’s leave the old problems behind, too. It is important to identify and solve the issues before any major transition process starts. We want to get off to a good start with no baggage from the past.

Assembling a Right Team

Include the right people from the start to ensure a thorough understanding of the requirements. Without competent subject matter specialists, accurate project detailing might be hampered, and critical areas might be overlooked.

Implementation & Testing

Outline critical milestones and resources required to complete the project and collect data. Finally, you may test the system to find and correct any problems in computations or data transfers. Don't forget to train your future users.

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What Brings Companies to DHRP?

DHRP develops Microsoft Dynamics 365 payroll systems designed for the Australian and New Zealand payroll compliance context, instead of a global system adapted to local regulations. This means no more workarounds, no more compliance gaps and a partner fully familiar with ANZ payroll from the bottom up.

We are proudly connected with the Australian Taxation Office (ATO) and recognised as a registered provider, ensuring compliance and reliability in our payroll solutions. You can find us listed on the ATO’s official website, reflecting our commitment to quality and adherence to regulatory standards.

What can we do for you?

  • Assign a project manager to plan the job and communicate during implementation.
  • Compliant with STP Phase 2 and Payday Super ready from 1 July 2026.
  • New Zealand’s payday filing, PAYE, KiwiSaver, and ACC levy compliance integrated with the obligations in Australia
  • Continuous post-go-live support, rather than a handover at the end of the project

Faqs

Ask Questions! It's Your Right To Know!

Still have questions? Our team is happy to help.

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No, Microsoft don't include native Australian/New Zealand payroll in Dynamics 365. It's a dedicated module such as DHRP's that sits on top of Dynamics 365 Finance & Operations. This means that your payroll, HR, and financial information are all kept in the same system, and not synced between two different systems. DHRP's Microsoft Dynamics 365 payroll solution has been created with the ANZ market in mind.

It will usually take between two weeks and 18 months, depending on the size of your business, the complexity of the data, and the number of awards, entities or pay conditions you are handling. A single-entity business that transitions clean data is much faster than consolidating payroll after a merger or acquisition. Once you've defined your requirements, your Dynamics 365 payroll implementation consultant will provide you with a more concrete estimate.

Single Touch Payroll Phase 2 was rolled out in Australia from January 2022, and all payroll reporting must be itemised, disaggregated and reported to the ATO for every pay run, including gross wages, tax withheld and superannuation liability. It's integrated into DHRP's D365 payroll module and reports automatically every pay cycle. Employees are still required to sign a TFN declaration, but this is kept on your records instead of sending it to the ATO individually.

Yes. Modern award interpretation in Dynamics 365 payroll automatically applies the right overtime, penalty rates and allowances to each employee, depending on their award or enterprise agreement. This eliminates the major source of underpayment in Australian businesses: manual rate lookups. It is very useful in industries that have trending shift patterns, casual loading or multiple awards that apply to them.

Payroll carries important personal and financial information, such as Tax File numbers, IRD numbers, bank information and superannuation and KiwiSaver account information. Compliance with data protection rules and the need for breach prevention must be embedded in the implementation processes rather than tacked on. A structured Dynamics 365 payroll implementation consultant plans for data security as a part of the implementation.

The SG rate of 12% of ordinary time earnings takes effect on 1 July 2025, and is scheduled to increase over five years starting from 2021. It covers all employees (full-time, part-time and casual) who are eligible for it, whatever their wages are. Payday Super's tighter payment timeframes have to be taken into account along with this rate by employers.

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